HelloWallet, an online service that encourages you to spend your money more wisely, announced Thursday it has raised $12 million in its second round of funding. Investment research company Morningstar, Inc. and TD Fund led the round.
“HelloWallet helps workers figure out how to spend money, focusing on savings and reducing spending. We give you financial advice to manage day to day expenses,” Matt Fellowes, HelloWallet chief executive and founder, told VentureBeat in an interview.
HelloWallet offers the average American worker comprehensive financial advice on topics such as paying off debt, increasing savings, setting and sticking to a budget, and boosting overall wealth through savings and investments. The company uses behavioral psychology and statistics to give members recommendations on spending and saving practices. With this new round of funding, Morningstar and HelloWallet will team up to offer financial advice with company-issued 401Ks, so employees can make the most of their retirement efforts.
Customers can manage their money through HelloWallet’s website, with its iPhone app, and through a text message system for feature phones. An Android application will be released in the next six weeks.
The company prides itself on never selling your data to anyone and never pushing any banking products on you. All of your personal and financial data stored with HelloWallet is protected by “bank level” security measures. A HelloWallet subscription will cost your about nine dollars per month and for every five paid subscriptions, the company will donate one memberships to a family who cannot afford the monthly subscription cost.
“Since we launched we’ve sold more than 350,00 subscriptions and we are now growing at a much faster rate. We’ll use the funding to build up our team,” said Fellowes.
HelloWallet will use the $12 million dollar funding to grow its customer base and help more Americans build wealth. It also has plans to expand its free subscription donations.
HelloWallet is based in Washinton D.C. and has 35 employees. So far the company has raised more than $20 million dollars of funding.